Employment and Total Factor Productivity Convergence

29 Pages Posted: 20 Oct 2006

See all articles by David Greasley

David Greasley

University of Edinburgh

Jakob B. Madsen

University of Copenhagen - Department of Economics

Abstract

Using a new 16-country data set we demonstrate a robust negative employment-total factor productivity trade-off 1870-2004. Widely disparate cross country employment growth had a powerful long term influence on productivity dispersion. Unexceptional US productivity growth principally resulted from her exceptional employment growth rather than from her initially high productivity levels. The negative externalities associated with higher employment are shown to have dominated the diminishing of total factor productivity gaps among the 16 countries, and led to the erosion of US productivity leadership over the twentieth century.

Suggested Citation

Greasley, David and Madsen, Jakob Bruechner, Employment and Total Factor Productivity Convergence. Kyklos, Vol. 59, No. 4, pp. 527-555, November 2006, Available at SSRN: https://ssrn.com/abstract=938840 or http://dx.doi.org/10.1111/j.1467-6435.2006.00348.x

David Greasley (Contact Author)

University of Edinburgh ( email )

Old College
South Bridge
Edinburgh, Scotland EH8 9JY
United Kingdom

Jakob Bruechner Madsen

University of Copenhagen - Department of Economics ( email )

Ă˜ster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

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